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The Countryside Recreation Research Advisory Group Conference 1976

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The Countryside Recreation Research Advisory Group Conference 1976 The Countryside Recreation Research Advisory Group Conference 1976 Durham University 22-23 September Proceedings: Economic Aspects of Countryside Recreation Management Issued by: Countryside Commission Countryside Commission John Dower House for Scotland Crescent Place Bartleby Cheltenham Redgorton Glos GL50 3RA Perth PHI 3EW CCP 101 Price £3 Crown copyright 1976 ISBN 0 902590 46 4 Janssen Services Tel-: 01-626 5289 C c 14 The Quay, Lower Thames Street, London EC3R 6BU C> I INDEX Page No, Preface 1 CRRAG Members & Previous Conferences Background Paper Economic aspects of countryside recreation managment R. Stoakes Countryside Commission Session 1 Aspects of recreation financing by public agencies Opening remarks 27 T. Huxleyj Countryside Commission for Scotland Financing countryside recreation as part of the national forest enter- prise 30 D.A. Mithen., Forest Management Division., Forestry Commission Financing water recreation 37 A.L. Colbeckj Recreation & Amenity Manager_, Northumbrian Water Authority The impact of grant assistance for tourist projects 46 S. Mills; English Tourist Board Discussion 54 Session 2 Financing countryside recreation as part^ of a local authority's resppnsibi'lities Personal viewpoint 1 71 Clive Gordon^ Nottinghamshire County Council Personal viewpoint 2 77 Dennis Woodman,, Cheshire County Council Discussion 84 Session 3 Financing individual recreation enterprises Case Study 1: Culzean Country Park 107 A.B. Bryant., National Trust for Scotland Case Study 2: Stratfield Saye and Wellington Country Park 212 Christopher Scott 1/2 Case Study 3; Beamish North of England Open-Air Museum 118 Frank Atkinson Discussion 128 Session 4 Recreation financing by private estate management Making ends meet in The National Trust Estates 139 J.A.K. Garrettj The 'National Trust The scope for private investment in countryside recreation 143 M.J. Ryan., LSD Leisure & Recreation Group of Companies Discussion 14? Session 5 A review of the problems and opportunities A panel discussion: 159 A.J. Gray son Forestry Commission P. Burnham Coopers & Lybrand Associates Ltd. M. Masterman., West Yorkshire Metropolitan County Council,, A. Smith .> Writer and broadcaster List of delegates 192 CHAIRMEN Session 1 T. Huxley Deputy Directorj Countryside Commission for Scotland Session 2 Wilson County Planning Officer Durham County Council Session 3 A.A. MacdonaTd National Park Officer Northumberland National Park Session 4 S. Caloert Chairman-designate Northern Council for Sport and Recreation Session 5 A.J. Gray son Chief Economist Forestry Commission PREFACE CRRAG is a technical liaison committee which was established in 1968 to ensure that the powers of its govern- ment agency members to undertake research and experimentation into aspects of countryside recreation were used as effect- ively as possible. Subsequent legislation has brought about changes to the agencies concerned and hence membership of the Group has been widened from time to time; it has also been joined by the local authority associations whose members not only rank amongst the chief "customers" for research undertaken but also themselves carry out a good deal of research/ experimentation and monitoring, mainly in a local context. CRRAG is thus concerned to keep its members in touch with current work; but the Group also publishes information on current research and statistics and holds a conference each year. The earlier conference themes dealt with technical sub- jects but more recently CRRAG has taken issues of policy interest as a focus for discussion designed, inter alia, to bring to light gaps in research which member agencies or others might wish to follow up in due course. In selecting a theme for their 7th annual conference, CRRAG took the view that it was becoming increasingly import- ant for managers, policy-makers and their advisers to try to make the most effective use of existing facilities in the countryside and, in developing new recreational opportunities, to make better use of methods of economic and financial appraisal. Thus the conference theme of economic aspects of countryside recreation management gave those engaged in, or concerned with recreation management in the public and private sectors an opportunity to consider how questions of pricing and charging for countryside recreation could be approached and how these issues, in turn, related to new investment. CRRAG felt it essential for the conference to be concerned with the realities of these questions, rather than being concerned with philosophical or academic debate. In publish- ing these proceedings, therefore, CRRAG hopes that a wider audience will derive value from the two days spent discussing this subject at Durham CRRAG MEMBERS Association of County Councils Association of District Councils Association of Metropolitan Authorities British Tourist Authority British Waterways Board Countryside Commission Countryside Commission for Scotland English Tourist Board Forestry Commission Natural Environment Research Council Nature Conservancy Council Sports Council Scottish Tourist Board Wales Tourist Board Water Space Amenity Commission PREVIOUS CRRAG CONFERENCES 1970 The demand for outdoor recreation in the countryside. 1971 Cost/benefit analysis in relation to planning. 1972 Use of aerial photography in countryside recreation and conservation research.* 1973 Useof site surveys in countryside recreation planning and management.* 1974 Information systems for recreation planning.* 1975 The recreation future of the countryside near towns and cities.* Reports still available. RS/1 ECONOMIC ASPECTS OF COUNTRYSIDE RECREATION MANAGEMENT PRICING: A BACKGROUND PAPER by R. Stoakes Countryside Commission "I went to take the aive -In Hide Park., where every coach was made to pay a shilling^ and horse 6d3 by the sordid fellow who had purchas 'd -it of the state,, as they were cat 'd" Entry for 11 April 1653 in John Evelyn's diaries. 1. INTRODUCTION The purpose of this background paper is to sketch out a num- ber of the theoretical and practical aspects of pricing which face providers of recreation facilities, whether in the public or the private sector. It should be stated at the outset that no hard and fast pricing policies can be advo- cated because pricing policy must be seen as a means to an end rather than an end in itself. Consequently an agreed policy can only be established when the overall objectives have been defined and relative priorities determined. This paper seeks to highlight some of the wider issues facing private and public providers when considering questions of pricing. It is therefore hoped that this paper will enable (a) the objectives of recreation provision to be more clear- ly defined, (b) the roles of the public and private sectors to be more apparent, and (c) the pricing mechanism to be seen as a significant instrument of management. 2. THE OBJECTIVES OF RECREATION PROVISION 2.1 Whether provision for recreation is made by the public or the private sector a set of overall objectives can be put forward against which particular pricing policies can be appraised. The most important economic objective will prob- ably be to ensure that resources are used as efficiently as possible. This means attaching the greatest importance to the provision and maintenance of a variety of recreation opport- unities of the right kind, the right number, scale, and location which provides the greatest benefits to consumers, at least cost. 2.2 The first difficulty facing the recreation provider in attempting to realise this objective is to determine whether recreation should be treated as a tradeable commodity or as a social service. The former implies that benefits will be maximised through the market mechanism, that is by charging for the facilities provided, whilst the latter suggests that the facilities will be made available, by local authorities and/or government, possibly free of charge. The present RS/2 situation resembles a mixture of the two with some private provision, some public provision which is priced and some which is free of charge. Recreation, therefore, can be seen to be both a tradeable commodity and a social service. 2.3 However, it must be recognised that within the overall objective of using resources as efficiently as possible, there are a number of goals which could override a strictly economic approach to the meaning of efficiency. These might include for example (a) social welfare-, . ie concern for dis- advantaged social groups: (b) environmental objectives, ie to ensure that scarce and valuable resources are adequately protected, or (c) the need to minimise levels of public expenditure and public subsidies. 2.4 These goals are considered in turn in the following parts of the paper. The first (part 3) examines the effic- ient use of scarce resources so as to maximise social bene- fits. This, approach begins by looking at recreation as a commodity and then examines where the market mechanism is likely to fail to produce satisfactory results in terms of social welfare. The discussion of the economic objective in recreation provision also provides a comparison between the behaviour of the public and private sectors in terms of price levels and scale of provision for visitors. Examples of "market failure", where private enterprise (or the market mechanism) is likely to produce results which diverge from the obj ective of overall efficiency, include:- a. monopolistic power: in this case because of the existence of a unique natural phenomenon, or a man-made resource which is
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